US Treasury yields slipped on Friday as investors reacted to President Donald Trump’s comments on global trade. The benchmark 10-year yield fell 5 basis points, closing at 4.258%, while the 2-year Treasury yield declined by 3 basis points to 3.756%. These moves reflect a shift in market sentiment amid ongoing trade tensions with China and other countries.
Trump’s recent statements suggested that he would consider imposing high tariffs of 20-50% on foreign countries if the US achieves its objectives, potentially dampening economic outlooks. He also denied that rising bond yields forced his hand in granting a 90-day tariff pause. The comments appear to have weighed on market sentiment, which had been encouraged earlier this week by the administration’s softer stance on US-China trade.
In a recent interview published Friday, Trump expressed confidence in the US economy and downplayed concerns about tariffs. However, China has denied ongoing trade talks with the US, saying that all tariff measures must be dropped if a resolution is to be reached. The comments have raised concern over US dominance on the global stage, as strategists at Deutsche Bank warned that the damage could be long-lasting.
Despite recent volatility in Treasury yields, which have seen significant swings between mid-February and April 11, market participants are now shifting their focus towards the president’s intentions for US-China trade.
Source: https://www.cnbc.com/2025/04/25/us-treasury-yields-investors-hope-for-us-china-trade-deal-.html